Despite rising interest rates, kenmo has selected 9 undervalued real estate stocks with confidence in their earnings and is currently watching them closely. The article highlights a focus on the earnings trends of individual companies.
kenmo believes real estate stocks remain attractive investments in the environment following the Bank of Japan's interest-rate hike and selected 9 stocks, focusing on companies with solid earnings and attractive valuations. Rather than avoiding the real estate sector as a whole given the current interest-rate environment, kenmo suggests identifying companies with strengths in their respective markets.
As short-term market developments, kenmo points out that the U.S. midterm elections in November and tighter regulations related to AI data centers could affect the investment environment. kenmo says it is important not to rush investment decisions and to carefully track changes in individual companies' earnings.
As an example of recent earnings trends, kenmo cites ローツェ (6323), which reported interim operating profit for the fiscal year ended April 2025 that was up 42.4% year on year, and expresses the view that share prices do not necessarily move based solely on earnings results.
kenmo emphasizes the importance of analyzing real estate stocks based on what markets a company operates in and what strengths it uses to generate earnings, and says undervalued stocks can remain attractive investments even as interest rates rise.